Volvo Group has reached a settlement with the California Air Resources Board (CARB) over allegations related to emissions control descriptions on certain truck engines sold in California between model years 2010 and 2016.
The agreement resolves concerns raised by CARB regarding the adequacy of documentation for specific emissions control systems used in Volvo Group trucks. The company stated that the settlement does not include any admission of liability and emphasized that its internal investigation found no evidence of bad faith actions.
Under the settlement terms, Volvo Group will pay USD 12.5 million in civil penalties and contribute USD 71 million to CARB’s Air Pollution Control Fund. The company will also invest USD 108 million in California emission-reduction projects, subject to regulatory approval, and reimburse USD 5 million in CARB-related costs.
As a result, Volvo Group expects a negative impact of approximately USD 196.5 million on its second-quarter 2026 operating income. Around USD 89 million will affect operating cash flow during the quarter, while the remaining financial impact is expected to be spread over the next five years.
The company noted that it proactively disclosed the issues to CARB nearly a decade ago and has cooperated with regulators throughout the investigation process. Volvo Group also confirmed that it is not aware of any additional emissions-related investigations involving its engines in the United States.
As part of the settlement, Volvo Group will provide software updates and a partial warranty extension for approximately 7,200 model year 2014–2016 engines operating in California.
The company stressed that there are no safety or performance concerns associated with the affected engines and reiterated its commitment to complying with emissions regulations through rigorous testing and engineering standards.
